Seoul Slaps Sanctions on NK Companies for 1st Time

The government yesterday said it imposed for the first time financial sanctions on three North Korean companies June 1.

The Finance and Strategy Ministry said the three North Korean companies are Korea Mining Development Trading Corp., Tanchon Commercial Bank and Korea Ryongbong General Corp., adding the sanctions were slapped in accordance with the U.N Security Council’s decision to condemn the North for launching a long-range missile April 5.

The sanctions prohibit South Korean companies from conducting financial and commercial transactions with North Korean companies and freeze the latter’s assets. Though no South Korean company has traded with North Korean companies and no North Korean companies have assets in South Korea, Seoul has imposed the sanctions to participate in the council’s decision, the South Korean government said.

A ministry official said, “After the North’s rocket launch April 5, the U.N. Security Council agreed to impose sanctions on the 24th of the same month,” adding, “We should implement the sanctions as a U.N member country.”

“It’s the first time for us to slap financial sanctions on North Korea, though we’ve done so several times against international terrorist organizations such as the Taliban in Afghanistan.”

The three North Korean companies subject to sanctions are said to engaging in missile and conventional weapons trade. The mineral and general corporations allegedly produce and export missiles and the bank provides the funding for the two companies.

South Korea will impose additional sanctions against North Korean companies if the U.N. Security Council produces a new resolution condemning the North’s second nuclear test late last month.